Partying to Cost More in Bali?

Many Bali Night Spots Paying Improper Tax Rates

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(9/23/2012)

Legislators from the Badung House of Representatives (DPRD-Badung) are complaining that lax collection policies by tax authorities are costing the regency substantial revenues in underpayment of taxes by nightspots and discothèques.

Badung lawmakers want the higher tax of 12.5% applicable to “clubs” rather than the lower 10% now being applied to clubs and nightspots parading as restaurants and bars across Bali.

A member of Commission C of DPRD-Badung, Putu Alit Yandinata, told Radar Bali: “We are asking the regency’s tax and tourism officials (Dispenda and Disparda) to coordinate their efforts. They should urgently match their permits and tax rates.”

The legislators are also asking for a speedier collection of taxes due to the regencies, complaining the long delays between the actual sale and the tax bill only accentuates losses suffered by Badung.

Many nightspots, clubs and discothèques are operating with incorrect permits as restaurants and bars in order to be able to pay the lower tax rate of 10%,

The regency is home to many bars and restaurants with permits from live music performance. Largely indistinguishable from discos and nightclubs, the businesses represent substantial loss in tax revenues to the regency due to their underpayment of taxes.